Rhode Island Non-Compete Agreement Template

Create a high quality document online now!

The Rhode Island Non-Compete Agreement Template can be downloaded and employed by a Business Entity (Companies, Corporations, Ltd., etc.) to restrict its Contract Recipient using confidential company information or materials for his or her own purposes or to solicit clients without the Company’s approval or permission. Such actions can have long-lasting and devastating effects to a Business Entity’s well being and current status.

In the State of Rhode Island, there are no statutes to govern this behavior directly, so having a written contract that is accepted and signed by the Recipient (i.e. Business Partner of the Company, Company Employee, etc.) specifically detailing behaviors he or she may not engage in as a result of having access to the Company’s Proprietary Information may be considered a wise precaution at the start of any business relationship. In fact, such a contract will only retain its enforceability as a contract if it is presented before such a relationship begins. Additionally, it is fair to mention that as with all contracts, its terms must be considered fair and legal so that it can be enforced if necessary.

Restrictions

Non-competes are disfavored in Rhode Island. Non-compete Agreements are enforced when there is a reasonable restriction in terms of the employer’s protectable interest. R.I. Gen. Laws § 5-37-33 makes any contract restricting the practice of any physician licensed to practice medicine void and unenforceable. Voided restrictions include the following.

(1) The right to practice medicine in any geographic area for any period of time after the termination of such partnership, employment, or professional relationship; and

(2) The right of such physician to provide treatment, advise, consult with, or establish a physician/patient relationship with any current patient of the employer; and

(3) The right of such physician to solicit or seek to establish a physician/patient relationship with any current patient of the employer.

Laws – None

How to Write

1 – The Nature Of This Document Will Be Summarized In The Introduction

The introduction of this contract (“1. Purpose”) will basically summarize its intent. This will contain some necessary language that must be included at the onset so that each Signature Party may be properly defined

Use the first available blank line in the introduction to furnish the Legal Name of the Company seeking to impose limitations on its Business Relationship’s dealings.Use the next available space to identify the individual who will accept the terms of this agreement and comply with its directives while it is in Effect.

2 – The Company’s Preferred Limitations On The Recipient Must Be Documented

In the article titled “2. Non-Compete/Nondisclosure,” the full scope of limitations the Company may impose will be presented in a checklist. Each statement that defines a restraint the Recipient has agreed to obey must be check marked to be included in this agreement.

The first statement, labeled with the words “Business Practices,” will define how the Recipient may operate in the professional world in relation to the Company’s field of industry. To restrain the Recipient in this manner, check the first checkbox statement.In the second statement, the Company’s “Clients/Customers,” can be barred from the professional relationships the Recipient may form in this field by checking the second box.The Company may need the Recipient’s promise to not form relationships with its Competitors by selecting the third checkbox.The fourth checkbox statement will allow the Company to forbid any Recipient pursuit of certain Competitors by listing them on the blank lines provided. If this has been done, then check the “Specific Competitor(s)” box to apply this restraint.If the Company prefers the Recipient to avoid developing or engaging in any professional relationships with its “Employees” then select the last checkbox.

3 – The Effective Time Frame For These Terms Must Be Accurately Reported

In order for this document to be taken seriously, it must be attached to a specific period of time. This task will be tended to in “3. Time Period.” First, supply the number of months or years and months this agreement’s terms will actually exist and be in Effect. Then, indicate if this period begins on the “Effective Date Of This Agreement…” or upon the “Termination of Recipient’s…” relationship with the Company by marking the first or second checkbox.

This document will obviously need to Terminate at one point or another. In “4. Purchase Option,” mark the first check box if the Company will allow the Recipient the choice of prematurely terminating this agreement by submitting a payment. If the Recipient will be able to do this, the required payment must be reported on the two blank lines in this statement.If this agreement must run its full course, from the Start Date until the end of the Period Of Effect, then mark the second statement.

5 – This Agreement’s Restraining Conditions Must Have Their Region Defined

In the section titled “5. Jurisdiction,” declare the Rhode Island areas where this contract will exert its power over the Recipient on the blank space after the words “…Shall Cover The Areas Of.”

6 – The Conditions Set Forth Must Be Accepted Through Each Party’s Signature

This contract’s terms must be set to a defined Date of Execution. This is the Date when both Signature Parties will confirm their comprehension and acceptance of this agreement’s terms and conditions through an Acknowledging Signature. This Document’s Execution Date should be entered using the three blank spaces in “13. Entire Agreement” The Company issuing this agreement’s terms must formally issue it by signature. The bottom portion of “13. Entire Agreement” will be occupied by two columns. The one on the left, “The Company,” provides an area where the Company may furnish its binding Signature. This may be supplied by an Authorized Representative. The blank line below this requires the Signature Party’s Printed Name and Title. Lastly, the Date of this Signature must be reported on the last blank line.

The Recipient of this contract will need to officially agree to these terms by signing the first line under the heading “Recipient.” He or she will also need to Print his or her Name on the line below this. The Date the Recipient has signed this paperwork must be reported by the Recipient on the “Date” line.